Adishwasher in a certain small restaurant can typically run 6 loads through the machine each hour. the restaurant manager offers dishwashers a double wage for each hour in which they run 10 loads of dishes or more through the machine. three months after this incentive program is begun, the restaurant’s dishwashers have never earned this incentive, and employee productivity is the same as ever.
which of the following is probably the incentive program’s most serious problem?

a. the incentive is based on subjective measures.
b. employees may think the goal is not attainable.
c. the rewards are not substantial enough to encourage effort.
d. the rewards are linked to time invested, not output.

Baskin promotions, inc. sells t-shirts decorated for a variety of concert performers. the company has developed the following budget for the coming year based on a sales forecast of 80,000 t-shirts: sales $ 1,400,000 cost of goods sold 820,000 gross profit 580,000 operating expenses ($100,000 is fixed) 418,400 operating income 161,600 income taxes (30% of operating income) 48,480 net income $ 113,120 cost of goods sold and variable operating expenses vary directly with sales, and the income tax rate is 30% at all levels of operating income. if the concert season is slow due to poor weather, baskin estimates that sales could fall to as low as 60,000 t-shirts. assume baskin actually achieves the 60,000 unit sales level, and that net income actually earned at this level was $70,000. a performance report would indicate that net income was: